How about the tax holidays of the pre-merger company?

How about the tax holidays of the pre-merger company?

As a general proposition, the tax holidays available to the pre-merger company will survive the merger if these tax incentives have not expired.

If the post merger company operates the business of the pre-merger company as a separate unit and accounts for it separately, the tax holidays of the pre-merger company will be available to the actual income attributable to such a separate business as if no merger had taken place.

If it is impossible to separate the pre and post merger company business, to maintain the tax incentives, the company should apportion income to different businesses by using the methods adopted by the law and regulations.